Bill Summary: SB00412 - An Act Concerning Lead Generators

• Establishes licensing requirements for "lead generators" (persons who initiate consumer interest in residential mortgage loans through marketing, advertising, or referrals) under the Banking Commissioner's authority, effective October 1, 2016.

• Lead generators must obtain a $1,000 annual license through the system and comply with advertising disclosures stating they are "LEAD GENERATORS ONLY" and will share consumer information with third parties.

• Prohibits lead generators from accepting advance fees, using consumer information for purposes other than loan facilitation, and engaging in deceptive practices including unauthorized calling, email solicitation, or misrepresentation of their business capacity.

• Grants the Banking Commissioner authority to investigate, examine, and enforce compliance through suspension, revocation, or denial of licenses, and establishes record-keeping requirements for lead generation activities covering the preceding two years.

• Makes technical amendments to existing mortgage licensing provisions (sections 36a-485 through 36a-498f) to incorporate lead generator licensing and clarify that licensed lead generators are not deemed to be acting as mortgage lenders, brokers, or loan originators.